Organization Not Exempt From Filing Form 990

The Internal Revenue Service recently published PLR 201204016, stating that an organization (Organization) was required to file Form 990. Organization was exempt under Section 501(c)(3) and had claimed an exemption from filing Form 990 under Section 1.6033(a)(2)(g)(i). Organization stated it was a mission society and thus exempt from filing.

As defined in Section 1.6033(a)(2)(g)(i), a mission society must have an affiliation with or be sponsored by one or more church or denomination. Further, the Section mandates that half the organization’s activities must occur in a foreign country. Section 1.6033-2(h)(3) provides relevant factors used in determining if an organization is affiliated with or sponsored by a church or demonization.

In its ruling, the Service determined that Organization fulfilled the foreign activities requirement of Section 1.6033(a)(2)(g0(i) but failed the sponsored by or affiliated with a church or denomination requirement because Organization failed to meet any of the factors listed in 1.6033-2(h)(3).

See PLR 201204016-Organization Required to File Form 990, Gift Law, Feb. 6, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.